When Javier Milei brandished a literal chainsaw on the campaign trail, people thought he was just being theatrical. Then he actually won. Fast forward to 2026, and the dust from his "Ley Bases" and the accompanying fiscal package hasn't just settled—it’s reshaped how money moves in South America's second-largest economy.
Honestly, it’s been a wild ride.
The Javier Milei Argentina tax reform isn't just one single law you can read over coffee. It’s a messy, aggressive, and highly calculated dismantling of a system that was basically a labyrinth of 150+ taxes. Milei’s goal was simple: stop the bleeding. But for the average person or business owner in Buenos Aires, "simple" is the last word they’d use to describe the transition.
The Income Tax Flip-Flop (Ganancias)
One of the most controversial moves—and the one that caught people off guard—was the return of the Income Tax (Impuesto a las Ganancias) for Fourth Category workers.
You’ve got to remember that the previous administration, in a desperate bid to win the 2023 election, basically scrapped income tax for almost everyone. It was a popular move, sure, but it blew a massive hole in the budget. Milei, the self-described anarcho-capitalist, did the unthinkable: he brought it back.
It feels counterintuitive, right? A guy who hates taxes raising them?
But he needed the provinces on board. Since income tax is "coparticipated" (shared between the federal government and the provinces), reinstating it was the carrot he used to get governors to support his broader reforms.
As of 2025 and heading into 2026, the floor for paying this tax has been adjusted for inflation. For fiscal year 2025, the 35% top rate kicks in for annual incomes over roughly ARS 53 million. The brackets now update twice a year, in January and July, based on the Consumer Price Index (CPI). It’s a bit of a "back to the future" moment for Argentine taxpayers, returning to the pre-2023 status quo but with much sharper teeth for inflation.
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Killing the "Impuesto PAIS"
If there was one tax everyone in Argentina universally despised, it was the Impuesto PAIS. This was a tax on buying foreign currency and imported goods. At its peak, it was a 30% surcharge that made buying an iPhone or a Netflix subscription feel like a heist.
Milei finally let it expire in early 2025.
This was a massive deal for the "chainsaw" narrative. By eliminating the PAIS tax, the government basically signaled that it was serious about normalizing the exchange rate. It lowered the cost of imports almost overnight. For example, some electronics and appliances dropped in price by nearly 35% because the tax burden simply evaporated.
However, don't think for a second that Argentina is now a tax haven. While he killed the PAIS tax, Milei has struggled to touch the "retenciones" (export taxes) as quickly as he wanted.
The "Mattress Dollars" Amnesty
There is a legendary amount of cash—literally hundreds of billions of dollars—hidden under mattresses and in offshore accounts by Argentines who don't trust their own banks. Milei’s tax reform included a massive "Blanqueo" or asset regularization regime.
It was a "no questions asked" invitation to bring that money back into the formal system.
- Under $100,000: Zero tax if you keep it in the system.
- Over $100,000: A tiered tax rate (5%, 10%, or 15%) depending on how fast you declared it.
By late 2025, reports indicated that billions had flowed back into Argentine bank accounts. This "fiscal innocence" bill, as some call it, was designed to provide the liquidity needed to finally kill the "cepo" (capital controls) that have choked the economy for years.
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Wealth Tax: The REIBP Gamble
Another clever—if slightly desperate—move was the REIBP (Régimen Especial de Ingreso del Impuesto sobre los Bienes Personales).
Basically, it’s a way to prepay your wealth tax for five years in advance at a reduced rate. Why would anyone do that? Because it guarantees "fiscal stability" until 2027. If the government decides to hike wealth taxes later, you’re shielded. For the government, it was a way to get cash now to balance the books and reach that "zero deficit" goal Milei is obsessed with.
The rates for the wealth tax (Bienes Personales) are also on a downward trajectory. The plan is to keep lowering the top rate until it becomes almost negligible, moving Argentina closer to the low-tax model Milei dreams of.
RIGI: The Red Carpet for Big Money
If you're a small business owner, the Javier Milei Argentina tax reform might feel like a mixed bag of higher income tax and lower import costs. But if you’re a multi-billion dollar mining or energy firm, it’s a golden era.
The RIGI (Incentive Regime for Large Investments) is the crown jewel of the reform package.
It targets projects over $200 million in sectors like mining, oil, gas, and technology. The perks are insane:
- Income Tax: A fixed 25% rate (down from 35%).
- VAT: Accelerated refunds.
- Customs: Zero duties on imports of capital goods.
- Stability: A 30-year guarantee that these rules won't change.
Critics call it a sell-out of national resources. Milei calls it the only way to get people to trust a country that has defaulted on its debt nine times.
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What Most People Get Wrong
The biggest misconception is that Milei is just cutting taxes across the board.
In reality, he's shifting the burden. He’s moving away from "distortive" taxes—the weird ones that mess with trade and currency—and moving toward "direct" taxes like income tax. He’s also betting heavily on the "Laffer Curve" logic: that by lowering rates on wealth and big investments, the economy will grow so much that the total tax take will actually increase.
The social cost hasn't been light. While inflation has tumbled from 211% in 2023 to much lower monthly digits in late 2025, the removal of subsidies and the return of income tax has squeezed the middle class.
Actionable Insights for 2026
If you’re doing business or living in Argentina right now, here’s the reality:
- Check your residency status: The "Blanqueo" (amnesty) has specific windows. If you missed the early ones, the 15% rate is still better than a potential legal headache later.
- Watch the January/July updates: Your tax bracket for Ganancias (income tax) will change every six months. Don't get caught with a surprise bill because you didn't adjust your withholdings.
- Import/Export shifts: With the PAIS tax gone and export "retenciones" slowly being chipped away (soybean export taxes were trimmed to 24% in late 2025), the math for trade has completely changed.
- The RIGI ripple effect: Even if you aren't a $200 million investor, the RIGI projects in Vaca Muerta (shale gas) and the "Lithium Triangle" are creating massive demand for local suppliers who now face fewer import hurdles for their equipment.
The "chainsaw" isn't finished. Milei’s midterm victory in October 2025 gave him more power in Congress, and rumors of a massive VAT (IVA) reduction are starting to swirl for the 2026 legislative session. Whether this gamble results in a stable, free-market powerhouse or a social explosion remains the $100 billion question.
Key Next Steps for Taxpayers:
- Consult with a local Contador (accountant) specifically about the REIBP if you have significant assets; the five-year prepayment window is a rare hedge against future political shifts.
- Review your supply chain for imported components; the expiration of the Impuesto PAIS means you should be renegotiating prices with distributors who might still be charging "crisis" margins.
- Monitor the official Boletín Oficial for monthly social security ceiling adjustments, as these are now tied directly to the CPI and can impact payroll costs more frequently than in previous years.